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DECISION No

DECISION No. 64/2002/QD-TTg OF MAY 23, 2002 RATIFYING THE PLANNING ON THE DEVELOPMENT OF VIETNAM�S INDUSTRIAL EXPLOSIVE MATERIALS BRANCH TILL 2010

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of December 25, 2001;

At the proposal of the Ministry of Industry in Official Dispatch No.4938/CV-KHDT of November 20, 2001,

DECIDES:

Article 1.- To ratify the planning on the development of Vietnam�s industrial explosive materials branch with the following principal contents:

1. Orientation for development of industrial explosive materials branch till 2010:

Industrial explosive materials are special commodity products and constitute a conditional production and business line uniformly managed by the State.

The development of industrial explosive materials branch must ensure high synchronism from the stage of research, experiment, production to the supply of explosive materials, the provision of explosion services; quickly absorb the world�s advanced technologies and combine them with the technologies and equipment available in the country in order to turn out industrial explosive materials attaining a high-tech level and make industrial explosive materials branch a complete industry, which can well serve all economic sectors� requirements and proceed to turn out exportable products, while taking into account national defense and security demands. In the course of producing, storing, transporting and using industrial explosive materials, the absolute safety and protection of the environment and living surroundings must be ensured.

2. Basic objectives of the planning on the development of industrial explosive material branch till 2010:

- To invest in the production of Nitratammonium (NH4NO3), one of the base raw materials for producing explosives, with a porosity and a purity of over 99.5%, for timely and adequate supply thereof to the explosive production establishments, and at the same time to invest in the research into other raw materials in service of the manufacture of explosion support devices.

- To improve and modernize the existing emulsion explosive production line, and gradually eliminate the traditional explosives, including those recycled from waste defense explosives (containing TNT), with a view to reducing the use rate thereof by 2005 and afterward to under 5-10% and only in places where conditions permit.

- To study the investment in production of water-proof safe emulsion explosives with high blasting power, for use in mine pits where methane gas and explosion dust accumulate; to develop and improve methods of producing loose, high-power emulsion explosives on special-use vehicles at explosion sites.

- To study the investment in production of a number of categories of explosives and explosion support devices in service of the petroleum industry.

- To synchronize and modernize the chain for production of explosion support devices: high-power detonating fuses, detonators and non-electrical wires to substitute imports.

- To improve the work of organizing the production of industrial explosive materials, a network of provision of highly specialized explosion services, in order to ensure the social order and safety; and maintain only two designated State enterprises for the production and supply of industrial explosive materials as at present.

- To attach importance to the development of package explosion services, first of all in industrial zones with great demands; step up the work of training human resources and improve State management mechanisms and policies applicable to the industrial explosive materials branch.

3. The production output of industrial explosive materials:

To fully meet the demand for industrial explosive materials in terms of quantity and category and at reasonable prices. The estimated production and consumption level of explosives of all kinds and explosion support devices (in Appendix 1) shall be as follows:

- By 2005: Around 30,240 tons of explosives.

- In the 2006-2010 period: Around 35,910 tons of explosives.

4. Development plans:

- For the 2002-2005 (Appendix 2): It is necessary to work out as soon as possible pre-feasibility study and feasibility study reports of projects on production of nitratammonium, emulsion explosives for pit safety, loose high-power emulsion explosives and explosive materials for the petroleum industry, and better the existing explosives and explosion support devices.

- For the 2006-2010 (Appendix 3): The development scale and progress depending on the practical situation of the 2002-2005 period shall be appropriately readjusted.

5. Investment capital demand:

a/ The total development investment capital for the industrial explosive materials branch for 10 years is estimated at around VND 355 billion, in which:

- For the 2002-2005: Around VND 212 billion.

- For the 2006-2010: Around VND 143 billion.

b/ Investment capital sources:

- Loan capital and capital mobilized from other sources for investment according to the list of approved projects.

- Capital supports from the State budget for such activities as scientific and technological research (covering research for application, experimental manufacture) as well as national reserve and preservation of industrial explosive materials.

Article 2.- Organization of implementation

1. The Ministry of Industry, with its function of State management over industrial explosive materials, shall have to direct, monitor and urge the materialization of objectives and performance of tasks of the industrial explosive materials branch in service of the national economy, organize the periodical appraisal of the planning implementation and propose adjustments to the planning to make it suitable to the practical situation; coordinate with the concerned ministries and branches in further studying and improving legal documents as well as mechanisms and policies for the development of the industrial explosive materials branch under the approved planning.

2. The Ministry of Investment and Planning shall coordinate with the concerned ministries and branches in studying policies on assistance, provision and disposition of capital sources for the scientific research and application of the industrial explosive materials branch and the national reserve of industrial explosive materials.

3. The Ministry of Science, Technology and Environment shall coordinate with the Ministry of Industry and the Ministry of Defense in promoting scientific and technological research activities in the field of industrial explosive materials, with a view to absorbing and organizing the application of advanced scientific achievements and technologies of the region and the world; promulgating regulations on technology, technical and environmental standards related to the management and development of the industrial explosive materials branch.

4. The Ministry of Defense and Vietnam Coal Corporation shall direct their attached units in producing explosives and explosion support devices of all kinds fully meeting demands of the national economic branches; researching and absorbing technologies for producing explosives and explosion support devices in service of the petroleum industry in substitution for currently imported explosives and support devices, and aiming to export them.

5. Vietnam Oil and Gas Corporation shall create conditions for units producing industrial explosive materials at home to research into and experimentally produce industrial explosive materials up to the standards for petroleum exploration and exploitation in substitution for imports.

6. The Ministry of Public Security shall coordinate with the concerned ministries and branches in finalizing regulations on management of industrial explosive materials, including export and import thereof and fight against illegal trading in industrial explosive materials.

7. The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the concerned ministries and branches in studying the readjustment and amendment of the regimes and policies towards laborers in the industrial explosive materials branch; conducting the inspection of technical safety and labor protection at establishments producing, preserving, supplying and using industrial explosive materials.

Article 3.- The ministries, branches and People�s Committees of the provinces or centrally-run cities shall base themselves on their respective functions and tasks to direct the strict management of production, reservation, transportation and use of industrial explosive materials according to the current regulations.

Article 4.- This Decision takes effect 15 days after its signing.

Article 5.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, presidents of the People�s Committees of the provinces or centrally-run cities, the managing board chairman and the general director of Vietnam Coal Corporation, the managing board chairman and the general director of Vietnam Oil and Gas Corporation and the heads of the concerned agencies shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister
NGUYEN TAN DUNG

Appendix 1

INDUSTRIAL EXPLOSIVE MATERIALS CONSUMPTION DEMAND TILL 2010

(Promulgated together with the Prime Minister�s Decision No. 64/2002/QD-TTg of May 23, 2002)

1. Consumption demand by quantity

Year

Total demand

Cartridge * (bullet)

Explosive (ton)

Detonator** (1,000 units)

Wire of all kinds (1,000 m)

Detonating charge (1,000 units)

2002

68,854

23,070

26,354

19,649

223

2005

90,254

30,240

36,493

27, 668

312

2010

126,585

35,915

44,633

31,589

367

Notes: * Exclusively for the petroleum industry

** Including those for the petroleum industry

2. Consumption demand by product category

Ordinal number

Categories

Unit

Demand

2002

2005

2010

1

Total demand for explosives

Ton

23,070

30,240

35,915

- Zecno

Ton

3,069

0

0

- ANFO

Ton

4,674

9,030

10,524

- Water-proof ANFO

Ton

3,487

5,175

0

- Loose emulsion

Ton

0

0

6,052

- Molded emulsion

Ton

6,054

10,815

14,587

- Traditional explosives

Ton

4,406

2,944

1,800

- Pit safety explosive AH1

Ton

1,380

0

0

- Pit safety emulsion explosive

Ton

0

2,276

2,952

2

Total demand for cartridge (for the petroleum industry)

Bullet

68,854

90,254

126,585

- Bed-testing cartridge TCP-89

Bullet

36,380

47,687

66,883

- Bed-testing cartridge Baracuda-89

Bullet

16,050

21,038

29,507

- Bed-testing cartridge Baracuda-127

Bullet

16,050

21,038

29,507

- Shearing and breaking cartridge of all kinds

Bullet

374

491

688

3

Total demand for detonators *

1,000 units

26,354

36,493

44,633

4

Total demand for detonating wires *

1,000 m

19,649

27,668

31,589

5

Total demand for detonating charges

1,000 charges

223

312

367

Notes: * Including those for the petroleum industry

Appendix 2

PORTFOLIO OF THE INDUSTRIAL EXPLOSIVE MATERIALS BRANCH FOR THE 2002-2005 PERIOD

(Promulgated together with the Prime Minister�s Decision No. 64/2002/QD-TTg of May 23, 2002)

No.

Portfolio

Investment form

Investment year

Construction site

Capacity

I

Mining Chemicals Company (1�3)

1

Investment in production

Production chain for pit emulsion explosive

New construction

2002�2003

Quang Ninh province

2000�3000 tons/year

2

Investment in supply process

-

Construction of warehouses

New construction

2002�2005

Son La, Bac Kan, Gia Lai,

Kien Giang provinces

S40 tons

-

Transport means (truck, sea-going ship, barge)

New

2002�2005

Enterprises and their branches

-

Other investments (motorway, control house, computer network, mechanical workshop)

New

2002�2005

-

Explosion service equipment

New

2002�2003

-

ANFO producing and loading vehicles

New

2002�2005

Ninh Binh, Kien Giang provinces

Two 5-ton vehicles

3

Investment in industrial explosive materials research and experiment

-

Facilities and equipment

New

2002�2004

Quang Ninh province

II

Plants under the General Department for Defense

Industry

1

Investment in production

-

Nitratammonium production chain

New construction

2002�2003

Vinh Phuc province

20,000 tons/year

-

Raising of quality of present emulsion explosives (Z131)

Renovation

2003

Thai Nguyen province

3,000 tons/year

-

Raising of quality of present emulsion explosives (Z113)

Renovation

2002

Tuyen Quang province

3,000 tons/year

-

Production chain of high-power fuses (Z131)

New construction

2002

Thai Nguyen province

300�500 tons/year

-

Production chain of raw materials for manufacturing explosion support devices (Z121)

Renovation

2002

Phu Tho province

-

Production chain of differential, non-electrical and safety support devices (Z121)

Renovation, expansion

2003�2004

Tuyen Quang province

80 million units

-

Production chain of industrial explosive materials for the petroleum industry (Z115)

New construction

2002�2004

Thai Nguyen province

2

Investment in supply process

-

Construction of warehouses

New construction

2002�2003

Central region and Dong Nai

150 & 120 tons

-

Trucks

New

2002�2005

GAET company

10 trucks

Appendix 3

PORTFOLIO OF THE INDUSTRIAL EXPLOSIVE MATERIALS BRANCH FOR THE 2006-2010 PERIOD

(Promulgated together with the Prime Minister�s Decision No.64/2002/QD-TTg of May 23, 2002)

No.

Portfolio

Investment form

Investment year

Construction site

Capacity

I

Mining Chemicals Company

1

Investment in production

Production chain of loose emulsion explosives

New construction

2006

Quang Ninh province

5,000 tons/year

2

Investment in supply process

-

Construction of warehouses

New construction

2006�2010

Nghe An, Khanh Hoa, Ha Nam provinces

S 60 tons

-

Transport means (truck, sea-going ship, barge)

New

2006�2010

Enterprises and their branches

-

Port loading-unloading equipment

New

2006�2010

-

Other investments (motorway, control house, computer network, mechanical workshop)

New

2006�2010

3

Investment in explosion services

-

Loose emulsion producing and pumping vehicles

New

2007

Quang Ninh province

One 10-ton vehicle

II

Plants under the General Department for Defense Industry

1

Investment in production

-

Production chain of high-power explosives (Z115)

New construction

2006

Thai Nguyen province

2,000-3,000 tons/year

-

Upgrading of existing emulsion technologies and equipment (Z131)

Renovation

2007

Thai Nguyen province

4,000 tons/year

-

Upgrading of existing emulsion technologies and equipment (Z113)

Renovation

2008

Tuyen Quang province

4,000 tons/year

2

Investment in supply process

-

Trucks

New

2006

GAET company

2 trucks